Yeah, I have the same issue. I managed to get the settings how I wanted by temporarily going down to 100%. The rest of the program seems to work fine in 125%, except for the low res. splash screen, so as long as you don't need to keep changing your preferences it's not a massive issue.
Although, to be fair, it really is something Adobe should have noticed and addressed before launching the update. Bugs this obvious and inconvenient should never be seen by users.